carbon emissions

Democrats Address Climate Change with Carbon Caps, Modernized Infrastructure

Democrats in the Oregon legislature and Congress will be pushing legislation to cap carbon emissions, including from transportation, which is the largest source of greenhouse gas emissions. Oregon lawmakers will consider a cap and trade proposal, while Oregon Congressman Peter DeFazio presses for a $500 billion federal investment in modernized infrastructure.

Democrats in the Oregon legislature and Congress will be pushing legislation to cap carbon emissions, including from transportation, which is the largest source of greenhouse gas emissions. Oregon lawmakers will consider a cap and trade proposal, while Oregon Congressman Peter DeFazio presses for a $500 billion federal investment in modernized infrastructure.

The Oregon cap and trade legislation was unveiled last week.  Oregon Public Broadcasting  provided a glimpse into its details.

The Oregon cap and trade legislation was unveiled last week. Oregon Public Broadcasting provided a glimpse into its details.

(Updated February 1, 2019)

While the big event in the 2019 Oregon legislative session is sure to be a $2 billion revenue package for schools and an industry-supported Medicaid package, the first major legislative thrust by Democrats will be a cap and trade bill designed to put a lid on carbon emissions. A key Oregonian in Congress is also pushing for a major response to climate change.

The bill is expected to surface by the end of the week. Its chief architect, Senator Michael Dembrow, D-Portland, says the measure will be very similar to a previously introduced bill, but with more clarity on issues such as oversight, mitigation for vulnerable industries and how quickly the emission cap will decline. Republicans are grumbling they haven’t seen evolving drafts since late last year.

Not surprisingly, Dembrow predicts a “noisy few weeks” when the Joint Committee on Carbon Reduction, which he co-chairs, considers the controversial measure, called the Clean Energy Jobs Bill.

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Environmental groups expect a cap and trade bill will pass this session. Governor Brown and Democratic legislators vigorously campaigned in support of climate change legislation. Brown's budget framework, released late last year, detailed the creation of a Carbon Policy Office, with a $1.4 million budget, that has been charged with exploring how Oregon can reduce its greenhouse gas emissions while still growing the state’s economy.

State Senator Michael Dembrow, D-Portland, and Oregon Congressman Peter DeFazio will be on point with legislation to address climate change. Dembrow co-chairs the committee to take up a cap and trade system that seeks to limit carbon emissions, including from transportation fuels. DeFazio is floating a measure to invest $500 billion to modernize the nation’s transportation system and reduce carbon emissions, while increasing resiliency in highways, tunnels and bridges.

State Senator Michael Dembrow, D-Portland, and Oregon Congressman Peter DeFazio will be on point with legislation to address climate change. Dembrow co-chairs the committee to take up a cap and trade system that seeks to limit carbon emissions, including from transportation fuels. DeFazio is floating a measure to invest $500 billion to modernize the nation’s transportation system and reduce carbon emissions, while increasing resiliency in highways, tunnels and bridges.

The basic idea is to set a fixed limit on greenhouse gas emissions and issue allowances that can be traded in an open market, which currently includes seven states and four Canadian provinces. The greenhouse gas emission limit would ratchet down over time.

The Environmental Defense Fund anticipates Oregon’s cap and trade bill will parallel a similar structure in California that extends to transportation fuels as well as regulated electricity and natural gas utilities.

As Oregon lawmakers hack away on climate change legislation, Oregon Congressman Peter DeFazio, who chairs the House Transportation and Infrastructure Committee, is preparing to push for a $500 billion investment to address crumbling US infrastructure, support “green” infrastructure that is more resilient to climate change and develop cleaner fuels. Among other funding, DeFazio proposes issuing 30-year bonds paid for by indexing the federal gas tax to inflation, which he says could generate between $17 to $20 billion per year to invest.

He wants the House to pass a version of his legislation in the next six months and it appears House Democratic leaders support his push.

DeFazio told Curbed in an interview there is a $102 billion backlog to repair America’s metropolitan transit systems and that critical transportation routes such as the Holland Tunnel in New York and the I-5 Columbia River Bridge could be wiped out by flooding or earthquakes, causing economic catastrophes.

Curbed observed, “[DeFazio] takes control of the Transportation and Infrastructure Committee during a pivotal time when technology advances, long-term funding issues and climate change demand a comprehensive, forward-thinking plan.”

In quintessential DeFazio fashion, he said, “I’m going to approach it from a very hard-hearted way: Boy, you’re stupid if you don’t make these investments.”

 

Carbon Emission Bill on Center Stage in February Session

Oregon lawmakers will debate a cap-and-invest program at the short legislative session beginning in February that could generate as much as $700 million in new annual revenue to invest in projects statewide to reduce carbon emissions, but opponents warn also could drive up fuel prices, hurt family farmers and disproportionately harm rural residents.

Oregon lawmakers will debate a cap-and-invest program at the short legislative session beginning in February that could generate as much as $700 million in new annual revenue to invest in projects statewide to reduce carbon emissions, but opponents warn also could drive up fuel prices, hurt family farmers and disproportionately harm rural residents.

As Oregonians ponder how to vote on Measure 101 by January 23, Oregon lawmakers are sharpening their arguments for and against legislation in the 2018 session to cap industrial carbon emissions.

Defeat of Measure 101, which contains $320 million in fees on hospitals and health insurers to sustain Oregon’s Medicaid program, could throw a wrench into the short, six-week legislative session that starts in February. However, regardless of the Measure 101 vote, what supporters call the Clean Energy Jobs Act is likely to be a center-stage issue.

The Oregon proposal, developed through a work group and championed by Senator Michael Dembrow of Portland and Ken Helm of Beaverton, both Democrats, is modeled after an existing cap-and-invest program in California.

If enacted into law here, Oregon businesses would be given a limit for their carbon emissions. The estimated 100 Oregon businesses that are likely to exceed the proposed limit would be required to buy market-priced allowances. The allowances would be sold at a North American auction and the revenue generated would be invested in Oregon projects intended to slow climate change.

Backers of the idea say it could generate as much as $700 million annually, providing funding for electric vehicles, residential solar panels, improved bike lanes and utility bill assistance for low-income and elderly Oregonians.

Leading Oregon business and farm groups aren’t so enthusiastic. They warn cap-and-invest will result in higher energy bills, discourage business growth in Oregon, hurt family farm owners and disproportionately harm rural residents. Mark Johnson, a former GOP legislator who now heads Oregon Business & Industry, worries there isn’t enough time in a short session to negotiate an acceptable compromise on such a complex issue.

Similar legislation has been debated in Oregon in previous sessions. This time there seems to be stronger, more unified political support, including from Governor Brown, that might push it through in the 2018 short session in which Democrats control both the House and Senate.

The final version of the legislation is still in flux and isn’t scheduled for public release until next week. Dembrow and Helm are working on ways to mitigate concerns, such as earmarking 20 percent of cap-and-invest proceeds for projects in rural Oregon.

There are strong coalitions working both for and against the proposed legislation. Renew Oregon touts the legislation’s ability to drive clean energy job growth in Oregon. The legislation is also supported by the Oregon Business Alliance for Climate. The campaign against the legislation is organized under the banner of Oregonians for Balanced Climate Policy, which has been around since at least the 2009 session opposing what was then called the Green Jobs Act.

Energy for an Energy Plan

Governor Kitzhaber has prevailed in persuading lawmakers to approve high-profile initiatives in education, early childhood learning and health care. Now he wants to tackle energy, which could prove a more elusive and tougher sell.

Earlier this year, Kitzhaber handpicked three dozen industry insiders to recommend innovative policy ideas and create a 10-year energy plan. Teams worked for four months, focusing on: 1) consumption/energy efficiency, 2) supply side/resource mix, 3) siting, 4) transportation, and 5) governance.

The group sent its recommendations to Kitzhaber, which now have been made public. Their major theme is reducing carbon dioxide emissions through energy source conversion, more reliance on renewables, and ditching power generation based on high-carbon fossil fuels. Most Oregonians may not know that more than half of the state’s electricity comes from coal-burning power plants.

One big hurdle in accomplishing carbon reduction is already surmounted as PGE has agreed to close down its Boardman coal-fired plant. But even that decision raises thorny questions as the utility looks for a way to replace a source of reliable energy to serve its base load.

Legislators had a previous taste of energy politics when they considered, but didn't act, in the 2009 session on a cap-and-trade proposal, intended to use market forces to encourage businesses with options to switch to energy sources with lower carbon emissions.

Since then, interest has grown in the merits of a carbon tax, which is a more direct disincentive for using fossil fuels. It also is a tax, which raises political flags.